Robert Walters trades as expected in first quarter
By Josh White
Date: Wednesday 15 Apr 2026
(Sharecast News) - Robert Walters reported first-quarter trading in line with expectations on Wednesday, with group net fee income declining modestly but showing signs of sequential improvement as growth returned in several key markets.
The London-listed recruitment firm said group net fees fell 2% year-on-year on a constant currency basis to £65.2m in the three months ended 31 March, compared with £67.3m a year earlier.
That marked an improvement from declines of 14% and 13% in the first and second halves of 2025 respectively, while net fees in March rose 5% year-on-year.
Performance was mixed across regions.
Asia Pacific, which accounts for 42% of group net fee income, grew 4%, supported by a 13% increase in Japan as the company's largest market returned to growth.
Europe, representing 29% of group net fees, declined 16% amid continued weakness in northern markets, although Spain delivered 13% growth.
UK net fees rose 1% against a stabilising market backdrop, while the Rest of World segment increased 23%, driven by strong recruitment outsourcing growth.
By business line, specialist recruitment net fees declined 5%, with permanent hiring down 2% and temporary recruitment falling 11%.
In contrast, recruitment outsourcing net fees rose 13%, marking the first quarter of growth since late 2022, supported by resilient retained client activity and contract expansion.
Overall, 50% of the specialist recruitment portfolio delivered year-on-year growth, an improvement on 9% in the first half of 2025 and 20% in the second half.
"Trading for the first quarter was in-line with the board's expectations," said chief executive Toby Fowlston.
"It was encouraging that the momentum we saw in the second half of last year in certain specialist recruitment markets, such as the UK, Spain and New Zealand, continued into the early months of 2026.
"Furthermore, Japan, the group's largest market, also returned to growth after a tough last quarter.
"That said, market conditions in northern Europe remained challenging overall.
"Elsewhere in the group, we were encouraged to see our recruitment outsourcing business return to growth for the first time since late 2022."
He added: "Whilst the hiring market impact of the Middle East conflict appears to remain, at this point, limited to the region itself, we remain mindful of the potential downstream macroeconomic impact in other markets should tensions be protracted, and our guidance for 2026 group net fees remains unchanged."
Productivity improved during the quarter, with net fee income per fee earner rising 9% year-on-year and permanent placements per consultant increasing 6% to 0.80 per month.
The group also reported continued progress on cost control, with the underlying monthly cost run rate falling below £23.5m, down from below £24m at the end of 2025.
Headcount stood at 2,880 at the end of March, broadly flat on the prior quarter but down 10% year-on-year.
Fee earner headcount rose 3% quarter-on-quarter to 1,722, while non-fee earner numbers declined 4% to 1,158.
The group ended the period with net cash of £20.1m, down from £26.2m at the end of December, reflecting the seasonal impact of bonus payments.
The board said it expected year-end net cash for 2026 to be broadly stable compared with the 2025 year-end position.
At 0918 BST, shares in Robert Walters were up 2.52% at 86.73p.
Reporting by Josh White for Sharecast.com.
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